òòò½Íø Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Ethnic Diversity, Historical Economic Exchange, and Development: Evidence from Andean Peru
òòò½Íø Journal: Applied Economics
(pp. 229–65)
Abstract
Is ethnic diversity good or bad for economic development? Most studies find corrosive effects. This paper shows that historical exposure to economic exchange can mitigate these effects in the long run. I collect data from a natural experiment of Peru's colonial history: the forced resettlement of native populations in the sixteenth century. Where the resettlement concentrated ethnically diverse populations with a history of internal crop exchange, contemporary populations perform better systematically. Additional evidence suggests that prior experience with mutually beneficial crop exchange shaped more open attitudes toward out-group members. Economic complementarities helped sustain long-run, market-oriented cooperation and local trade.Citation
Artiles, Miriam. 2026. "Ethnic Diversity, Historical Economic Exchange, and Development: Evidence from Andean Peru." òòò½Íø Journal: Applied Economics 18 (2): 229–65. DOI: 10.1257/app.20240281Additional Materials
JEL Classification
- F54 Colonialism; Imperialism; Postcolonialism
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- N16 Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: Latin America; Caribbean
- N36 Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Latin America; Caribbean
- N56 Economic History: Agriculture, Natural Resources, Environment, and Extractive Industries: Latin America; Caribbean
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
- Q12 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets